And you don’t know what it is, do you Mr. Jones?

Well, another apology.  A rant.  Sorry.  You know how it is.  Spleen needs venting.  I just gotta say…..

……and I would have thought a condemnation of the monetary system (last blog) would have generated more response.  Maybe I wasn’t clear?  I am saying that the system is rigged against the people.  YOU.  It is not the convenience we think it is.  It is, instead, an enslaving device.  That’s right – the system is designed to enslave and we are, in effect, indebtured by the system into servitude for life to an elite.

Sounds kinda crazy, doesn’t it?

But I think it is so.  Here’s why.  The Central bank prints money.  As much as they want.  For whatever reason.  They then ‘loan’ it to the banks and they charge interest to the banks on what amounts to IOU’s.  Unreal ‘fantasy money’.  If you stop to think about it, the Central Bank ‘print/creates’ say 100 dollars and then as soon as they hand it over to the retail banks it has ‘grown’ by the interest rate.  $100 dollars just morphed for no reason to $103.00.  (Currently only $1.00 but usually around $3.00) That is just $3.00 more of fantasy.  And – just to blow your mind – that extra $3.00 was not even printed!  It just sits there as a debt unrepresented by even printed ‘funny money’.

The banks are then allowed to loan that money and, further, they are allowed to loan as much as ten times the amount they borrowed from the Central Bank.  That is a multiplication of ten times the fantasy!  And, of course, they too charge interest. So, at this point, we have gazillions of dollars created all earning interest for the banks and yet those dollars have not done any real ‘work’ yet.  So far, no one has created anything but fantasy money.  There has been no ‘creation or exchange of real value’.  In other words, the money (at the banking level) has increased in value without creating any.

But it gets worse.

So now a company borrows some money and, of course, owes more than it borrowed because of the interest charged by the bank.  The company pays employees and buys capital goods to get started.  Interestingly, that company also pays a tax on that money spent.  So, not only has no value been created yet (the workers haven’t yet worked and the machines haven’t yet been turned on) but the so-called value of the already devalued (by interest) money is made less again by taxes.

The company has had no chance yet to create real value and yet they owe by way of taxes and interest probably half again what they borrowed.  Translated: the amount of fantasy money just grew again by 50%.  And this weird system of interest and taxes is multiplied again and again every time someone gets their hands on the original ‘funny money’ from employees to landlords to restaurants and even children’s allowances (sales tax on gumballs).

And we are all playing in this monetary game that results in the last guy in the line being the most heavily indebted.  Usually all his or her life.  And they are in debt to people who simply created the system or had the good fortune to be placed higher on the food chain.  Most of of those people, of course, worked hard to get higher on that chain.  They drank the Kool-Aid.   It is like a perverted game of musical chairs but where there are only half a dozen chairs and five of them are permanently occupied while dozens of others circle the one chair remaining open.  The majority simply cannot win.

This would not be so bad if it were just a game.  But to get into the game real people have to produce real goods with real labour.  And they do that by expending their life-force.

The lower-rung players have to make the stuff.  The bankers just made (and manage) the ‘system’.  And it is only the banks who are debt free and continue to make so-called profit from the producers of real goods and services.  They are the leeches.  The workers and to some extent the companies are the hosts to a huge and growing parastic ‘system’.

It would also not be so bad if there weren’t so many leeches.  To pay a few Swiss banking gnomes in Zurich for the ‘convenience’ of a monetary system might be worth it.  The system is convenient after all.  But we have multiple layers of leeches.  Stratas of sucks.  Piles of parasites.  Our system is so bad that it puts into debt the lowest entry players, the very students whose focus is directed on gaining access to this so incredibly corrupt system.  Student debt is likely the most cynical application of this evil system.  We charge the poor young innocents an entry fee so that they can play in a game they cannot win.

Bear in mind that I said that money – in itself – is not evil.  A token or IOU of debt is OK if it is fairly exchanged for real value.  It is only in the application of unrestricted money creation, interest and taxes that it becomes corruptible.  And that is what we have done.

OK.  No more.  I quit.  I probably don’t know anything and no one cares, anyway.  It’s a game.  We all play.  And we all lose to a lesser or greater degree (most first world people do OK).  But let me just be clear about what I think it is:  it is a corrupt system designed to exploit others for the benefit of the few.  So long as the disparity between the top and the bottom was not too great, a lot of people played.  Willingly, if not consciously.  But now that the balance of inequality between rich and poor has become so extreme, more and people are looking to exit the game.  They want out. And that is the connection to my off the grid blog.  I wanted out.  But the system is a tar-baby.  It is impossible to get out if everyone else is still in.  Why?  Because we are all in this together – whatever this is! 

3 thoughts on “And you don’t know what it is, do you Mr. Jones?

  1. I believe most bank shares pay dividends which are not taxed. So you can benefit from their profits.
    Consumer lending was instituted in the early 1920’s to allow workers to afford the purchase of mass produced manufactured goods. Prior to the twentieth century goods were hand made in smaller quantities. Most people rented and did not own property.
    Banks created more financial products, as any business will do, and combined with modern, mass media advertising, real estate development,
    and automobile manufacturers created the consumer culture.
    Credit cards, mortgages, equity loans, all to enable people to buy a piece of the illusions that the media sells. All those phony smiling faces on posters at the bank.
    It’s all unsustainable, of course and is destroying our planet in leaps and bounds, the political classes and elite enjoying the good life now by screwing the future for life on his planet.
    Don’t expect anything to change either. It’s a closed feedback loop system with no escape. You are born, obedience trained in a government school, trained to consume by the omnipresent media machine, and enslaved to the bank.
    The politics of power, greed and oil reign triumphant.


    • Sadly, I agree. I just feel so stupid for taking so long to figure it out. Well, in my defense, the world of Disney and Ozzie and Harriet were employed to make any real deep thinking more heretical. Why question the system that produces Father Knows Best? I also agree that we will not likely see any kind of real change from within the system and it is genius at keeping our collective consciousness semi, if not completely comatose. Too bad. I kinda like the place.


  2. Leverage is the real problem with the added issue of risky derivatives. Bank failures are an issue that regulators want to fix but too much money is being made and the banks are addicted to the profits. Banks are betting on failures to make money. The fundamental cause of the economic and financial crisis that began in late 2007 was lending by the financial sector that primarily financed speculation rather than investment. Escaping from the debt trap we are now in will require either a “Lost Generation”, or policies that run counter to conventional economic thought and the short-term interests of the financial sector.


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